Page 7 - Kattison Avenue - Fall 2025 - Issue 15

Figure 2: According to the FTC’s complaint, during checkout on mobile, consumers could not view the full text beneath the “No thanks” link
without scrolling or clicking the sticky footer arrow.

Amazon’s Obligations Under the Settlement The Bigger Picture: FTC’s Focus on Dark Patterns

In addition to the $2.5 billion payment, the settlement imposes The Amazon settlement is only the third time the FTC has
significant injunctive relief designed to curb the company’s obtained civil penalties under the Restore Online Shoppers’
alleged use of “dark patterns” in subscription and cancellation Confidence Act (ROSCA), but its significance goes well beyond
flows. Among other things, Amazon must: this single case. It reflects a broader regulatory strategy to police
digital practices that undermine consumer autonomy, especially
• Simplify Prime cancellations: Amazon is prohibited from
requiring consumers to navigate difficult, confusing or time- in subscription-based markets where recurring charges can
consuming prompts to cancel their subscriptions. Instead, generate significant revenue. Notably, the settlement also
the company must implement a streamlined, clear and included two Amazon senior executives, demonstrating the
accessible cancellation process. Commission’s willingness to hold individuals accountable
alongside corporations.
• Ban manipulative design practices: Amazon is required to
include a clear and conspicuous button for customers to The Amazon case signals that user interface design is now
decline Prime. Amazon can no longer have a button that as much a compliance concern as a customer experience
says, “No, I don’t want Free Shipping.” consideration. Companies can take a proactive approach by
reviewing practices in the following areas:
• Enhance disclosures: The company is required to present
clear, conspicuous information about pricing, renewal terms • Audit enrollment flows. Ensure interfaces present clear,
and cancellation options at the point of enrollment. straightforward choices and avoid design elements that
could mislead consumers or undermine informed decision-
• Compliance monitoring: Amazon must retain an
independent third party to monitor Amazon’s compliance making.
with the consumer redress distribution process. • Obtain clear, affirmative consent. Ensure that any charge
results from an explicit, unambiguous action by the
Interestingly, the executives named in the settlement incur no consumer. Consent should not be buried in general terms
direct obligations. The order applies to them for only three years,
compared to 10 years for the company, and they neither paid of service, hidden behind hyperlinks, pop-ups or dropdown
menus, or obtained through manipulative design elements.
monetary penalties nor appear to have lost their positions.

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